The Indian Hotels Company Limited (IHCL), India’s largest hospitality group, has reported an impressive set of financial results for the second quarter ending September 30, 2024, marking ten consecutive quarters of record-breaking performance. With a significant 28% year-over-year growth in revenue and a landmark portfolio expansion, IHCL’s momentum remains unmatched in the industry.
IHCL’s consolidated revenue surged by 28% in Q2, bolstered by a 40% increase in EBITDA, reaching an EBITDA margin of 29.9%. The Profit After Tax (PAT) rose by a remarkable 232%, amounting to INR 555 crore. Even before consolidating its catering arm, TajSATS, as a subsidiary, the company witnessed 16% growth in revenue and a 48% jump in PAT. For the first half of the fiscal year, IHCL recorded a 16% increase in revenue and a 106% rise in PAT, including a one-time gain from the TajSATS consolidation.
IHCL’s Managing Director & CEO, Mr. Puneet Chhatwal, attributes the quarter’s outstanding results to a strong resurgence in demand across segments. He noted that IHCL’s hotel segment grew by 16% in October, projecting further acceleration in Q3. “Our strategy for FY2025 remains focused on double-digit revenue growth, driven by our expanding new businesses and consistent performance across existing properties,” he added.
IHCL’s growth trajectory continued with the signing of 42 new hotels, bringing its portfolio to an industry-leading 350 properties. The company also strengthened its presence in Delhi by securing a management contract for the iconic ‘The Claridges, New Delhi,’ slated to launch in April 2025. Furthermore, IHCL expanded its offerings by acquiring a majority stake in Tree of Life, a boutique brand catering to the upscale leisure market.
During Q2, IHCL’s existing brands showed impressive RevPAR growth, with a 12% increase for its domestic properties and a RevPAR premium of 66% compared to competitors. International operations also performed well, with occupancy rising to 75% and a 10% growth in RevPAR.
The quarter saw IHCL open 14 new hotels, bringing its operating hotel count to 232. New additions included a Taj in Patna, a Gateway in Bekal, and a Vivanta in Jamshedpur. Internationally, the company expanded with SeleQtions in Thimpu and Mahabaleshwar, and multiple new properties under the Tree of Life and Ginger brands.
IHCL’s reimagined business verticals performed exceptionally well, particularly TajSATS, which recorded a 19% growth in revenue and sustained an EBITDA margin of 24%. The Ginger brand posted enterprise revenue exceeding INR 150 crore with a robust EBITDAR margin of 42%, while Qmin’s restaurant portfolio expanded to 52 outlets and amã Stays & Trails grew to include 227 bungalows, with 116 in active operations.
IHCL remains steadfast in its sustainability initiatives, with 38% of its energy now sourced from renewables and 336 EV charging stations installed across properties. The company has also made strides in eliminating single-use plastic, achieving a 45% recycling rate for water and adding 55 bottling plants. IHCL’s 37 skill centers across 15 Indian states underline its commitment to bridging the employability gap in the hospitality sector.
IHCL’s financial strength is underscored by a 30.5% EBITDA margin for its hotel segment, marking a 330-basis points increase. Standalone revenue reached an all-time high of INR 1,125 crore, a 19% year-over-year growth. Reflecting IHCL’s robust financial position, the company’s gross cash stood at INR 2,460 crore as of September 2024.
Executive Vice President and CFO, Mr. Ankur Dalwani, highlighted IHCL’s efficient cost management and strategic consolidation of TajSATS, which contributed to a 48% year-over-year growth in PAT. The consolidation reflects IHCL’s strategy of simplifying its structure to drive growth.
With a portfolio now spanning 350 hotels, an industry-leading growth pipeline, and an unwavering focus on sustainability, IHCL is poised to continue its record-setting trajectory.
